of a company's standing when one thinks of investing in its share capital, than when it is the intention to loan the company money on its mortgage bonds. Generally the bonds of business corporations are secured by mortgage, but some classes of bonds are dependent on the solvency or good faith of the company issuing them. The coupons attached to bonds represent the different installments of interest, and are to be cut off and collected from time to time as the interest becomes payable. Bonds are sometimes issued without coupons, and are then called registered bonds. Such bonds are payable only to the registered owner, and the interest on these is paid by check. Convertible bonds are such as contain provisions whereby they may be exchanged for stock, lands or other property. In Bonds are known as First Mortgage, Second Mortgage, etc., Debentures, Consols, Convertible Land Grant, Sinking Fund, Adjustment, Income or otherwise, according to their priority of lien, the class of property upon which they are secured, etc. come bonds are generally bonds on which the interest is only payable if earned, and ordinarily are not secured by mortgage. Bonds are also named from the rate of interest they bear, or from the dates at which they are payable or redeemable, or from both; as, U. S. 4's 1907, Virginia 6's Western Union 7's, coupon, 1900, Lake Shore reg. 2d, 1903. Brokerage and Commission. A commission merchant, or factor, is an agent intrusted by his principal with goods to be sold, with the authority to deduct from the proceeds of the sales a certain sum agreed upon as compensation for his services, remitting the balance to his principal. Such an agent impliedly agrees to perform his duties in a careful and diligent manner, and to obey the orders and instructions which he receives from his principal so far as he is able. He is bound to exercise his judgment and discretion to the best advantage of his principal, and to render just and true accounts. In the absence of special instructions to the contrary, he has an implied authority to sell at such times, and at such prices, as in the exercise of his discretion he may deem for the best interests of his principal. He may sell on credit, if it is customary so to do, among those in the same business, unless he has received orders to the contrary. All profits made by him in handling his principal's property or money, beyond his ordinary compensation, are for the benefit of the principal. He cannot himself be the purchaser of the goods intrusted to him to sell, unless he deals openly and fairly with his principal, and acquaints him with all the facts and circumstances material for him to know. Bankruptcy. Laws have been enacted in nearly all the States for the purpose of distributing the property of an insolvent debtor ratably among his creditors and discharging the debtor from further liability. Proceedings may be instituted by the debtor himself or by a creditor. As a general rule, proceedings in one State are not binding on a creditor residing in another State; but if Congress were to pass a national bankrupt law, this would annul all State laws on the subject, and proceedings under the national law would bind creditors in all the States and Territories. Insolvency proceedings are generally commenced by a petition to the Judges of the court of insolvency, setting forth among other things the debtor's inability to pay all his debts in full, and his desire to surrender all his property for the benefit of his creditors. If satisfied of the truth of matters alleged in the petition, the judge issues an order commanding the proper officer to take the debtor's property and hold it until a certain time, when the creditors meet and choose an assignee. The assignee then takes charge of the property, turns it into money, and declares a dividend for the creditors. Pending the proceedings, the debtor may be examined on oath for the purpose of making him disclose all matters concerning his property and the disposal thereof. If the debtor has conformed to the insolvent law in all respects, he is entitled to a discharge from his debts, which is given him by the judge on the debtor's obtaining the requisite assent from the creditors. In nearly all the States an insolvent debtor may, with the consent of his creditors, and in some States without such consent, assign all his property to a trustee for the benefit of his creditors, who converts it into money, dividing it pro rata among the creditors. Terms Used on 'Change. ACCOMMODATION PAPER.-Notes or bills not representing an actual sale or trade transaction, but merely drawn to be discounted for the benefit of drawer, acceptor or indorsers, or all combined. BALANCE OF TRADE. -Difference in value between total imports and exports of a country. BALLOONING.-To work up a stock far beyond its intrinsic worth by favorable stories or fictitious sales. " BEAR-One who strives to depress the price of stocks, etc., and for this reason 'goes short." BUYING LONG.-Buying in expectation of a rise. BREADSTUFFS.-Any kind of grain, corn or meal. BROKER.-An agent or factor; a middleman paid by commission. BROKERAGE.-A percentage for the purchase or sale of money and stocks. BULL.-A broker or dealer who believes that the value of stocks or breadstuffs will rise, and speculates for a rise. CALL.-Demand for payment of installments due on stocks. CALL.-A privilege given to another to "call" for delivery at a time and price fixed. CLIQUE.-A combination of operators controlling large capital in order to unduly expand or break down the market. COLLATERALS.-Any kind of values given in pawn when money is borrowed. CORNERS.-The buying up of a large quantity of stocks or grain to raise the price. When the market is oversold, the shorts, if compelled to deliver, find themselves in a "corner." CURBSTONE BROKERS.-Brokers or agents who are not members of any regular organization, and do business mainly on the sidewalk. DELIVERY.-When stock or grain is brought to the buyer in exact accordance with the rules of the Exchange, it is called a good delivery. When there are irregularities, the delivery is pronounced bad, and the buyer can appeal to the Exchange. DIFFERENCES -The price at which a stock is bargained for and the rate or day of delivery are no, usually the same, the variation being termed the difference. FACTOR.-An agent appointed to sell goods on commission FACTORAGE.-Commissions allowed factors. FLAT.-Inactive; depressed; dull. The flat value of bonds and stocks is the value without interest. FLYER.-A small side operation, not employing one's whole capital. FORCING QUOTATIONS is where brokers wish to keep up the price of a stock and to prevent its falling out of sight. This is generally accomplished by a small sale. GUNNING a stock is to use every art to produce a break when it is known that a certain house is heavily supplied and would be unable to resist an attack. KITE-FLYING.-Expanding one's credit beyond wholesome limits. LAME DUCK.-Stock-brokers' slang for one unable to meet his liabilities. POINTER.-A theory or fact regarding the market on which one bases a specula tion. POOL.-The stock or money contributed by a clique to carry through a corner. PRICE CURRENT.-The prevailing price of merchandise, stock or securities. SELLING SHORT.-To "sell short" is to sell for future delivery what one has not got, in hopes that prices will fall. WATERING a stock is the art of doubling the quantity of stock without improving its quality. THE INTER-STATE COMMERCE LAW. The Inter-State Commerce Act is a law passed by Congress in 1887, for the regulation of rates and the management of interState commerce. It applies to carriers engaged in the transportation of passengers or property wholly by railroad or partly by railroad and partly by water, from one State, Territory or District of the United States to any other State, Territory or District, or to or from a foreign country. It provides for the appointment of a board of five commissioners, empowered to enquire into the management of the carriers and determine the reasonableness of their rates. A carrier whose line is entirely within a State is subject to the act so far as it makes or accepts through rates on inter-State commerce. Among other things the act requires that all charges shall be just and reasonable; that charges for a shorter distance shall not exceed those for a longer distance on the same line in the same direction, when the circumstances and conditions are similar; that there shall be no unjust discrimination as between persons or classes of traffic or localities, in the charges made or in the service rendered; that the rates charged for transportation shall be printed, filed with the Commission and kept for public inspection at the several stations, and that the carriers shall annually make a complete exhibit of their business to the Commission. The act makes exceptions from its provisions of the carriage of property for the United States or for any State or municipal government, or for charitable purposes, or to or from fairs and expositions, and it allows of the issuing of mileage, excursion or commutation tickets, and admits of the giving of reduced rates to ministers of religion and free transportation to the officers and employes of the carrier, and to the principal officers of other carriers. THE LAWS OF CHANCE.-Card-players who are continually bewailing their ill-luck of always receiving the same poor cards, will, perhaps, be reassured by knowing that the fifty-two cards, with thirteen to each of the four players, can be distributed in 53,644,737,756,488,792,839,237,440,000 different ways, so that there would still be a good stock of combinations to draw from, even if a man from Adam's time had devoted himself to no other occupation than that of playing at cards. THE PLACE WHERE THE SUN JUMPS A DAY.-Chatham Island, lying off the coast of New Zealand, in the South Pacific Ocean, is peculiarly situated, as it is one of the habitable points of the globe where the day of the week changes. It is just in the line of demarkation between dates. There, at high 12 Sunday, noon ceases, and instantly Monday meridian begins. Sunday comes into a man's house on the east side and becomes Monday by the time it passes out the western door. A man sits down to his noonday dinnern Sunday, and it is Monday noon before he finishes it. There Saturday is Sunday and Sunday is Monday, and Monday becomes suddenly transferred into Tuesday. It is a good place for people who have lost much time, for by taking an early start they can always get a day ahead on Chatham Island. It took philosophers and geographers a long time to settle the puzzle of where Sunday noon ceased and Monday noon began with a man traveling west fifteen degrees an hour, or with the sun. It is to be hoped that the next English arctic expedition will settle the other mooted question: "Where will one stop who travels northwest continually?" A STOCK Insurance Company is one whose capital is owned by stockholders, they alone sharing the profits and they alone being liable for losses. The business of such a company, and also of a mixed company, is managed by directors chosen by the stockholders. Policy-holders, unless at the same time stockholders, have no voice in the management of the company's business or in the election of its officers. In a A Mutual Insurance Company is one in which the profits and losses are shared among the policy-holders (the insured.) Mixed Companies are a combination of the foregoing. mixed company all profits above a certain fixed dividend are usually divided among the policy-holders. Some mutual and mixed companies issue what are called nonparticipating policies. The holders of these do not share in the profits or losses. FIRE INSURANCE. Policies for fire insurance are generally issued for a period of one to five years. Ordinarily, in case of loss by fire, the insured will be paid the extent of his loss up to the amount of insurance, unless the insurance company prefer to replace or repair the damaged property, which privilege is usually reserved. If the policy contains the "average clause" the payment will cover only such portion of the loss as the amount of insurance bears to the value of the property insured. A Floating Policy is one which covers property stored in several buildings or places. The name is applied more particularly to policies which cover goods whose location may be changed in process of manufacture, or in the ordinary course of business. The "average clause" is a usual condition of policies of this class. Short Rates are rates for a term less than a year. If an insur ance policy is terminated at the request of the policy-holder, the company retains the customary "short rates" for the time the policy has been in force, as shown by the following tables: |